When presenting to junior risk managers about the failures of risk management at large financial firms, what is an accurate representation of a lesson learned from a historical financial disaster case?

Exam-Like

The Orange County case emphasizes the importance of fully understanding complex derivative contracts before entering into them.

59.2%

The London Whale case emphasizes the importance of considering the fact that correlations can increase sharply during a global financial crisis.

16.7%

The Northern Rock case emphasizes the importance of having a strong cybersecurity framework.

8.3%

The LTCM case emphasizes the importance of meeting regulatory capital requirements.

15.8%

Financial Risk Manager Part 1